Jeff Snowden
Jeff Snowden is the President of Aero-Space Reports, Inc., an industry leading aircraft title and escrow company based in Oklahoma City, Oklahoma. On a day-to-day basis, his primary function is to act as an Escrow Agent for trusted brokers, attorneys, financing companies and individual buyers/sellers. He prides himself on his ability to ebb and flow with each transaction based on the deal particulars, the parties involved and the circumstances surrounding the closing. Jeff is a member of International Aircraft Dealers Association (IADA), National Aircraft Finance Association (NAFA), National Business Aviation Association (NBAA) and Aircraft Owners and Pilots Association (AOPA).
Aircraft Escrow Closings Slowing Down for 2024?
Aircraft escrow closings in 2024 have been unpredictable, with longer-than-expected timelines and mixed activity levels. Learn what this could mean for year-end closings.
How will the aircraft escrow market end up in 2024? Let’s look to the past for clues as to what year-end may look like.
From 2020-2023, the volume of escrow closings was extremely high. So much so that it seemed like I didn’t even have the time for those brief moments of reflection. We were busy along with the rest of the industry. I knew the end of those years was going to be active. After all, Q4 is when most brokers experience their highest sales.
But fast forward to 2024, and so far, the year has been a bit of a mixed bag.
As you likely know, our business relies on repeat clients, most of whom are brokers, dealers, attorneys, and individual buyers/sellers. Of this group, there are clients who were just as active as any other year. But there are many that I’ve not heard from as much.
Based on conversations with aircraft brokers, I think there’s been a conscious decision to take a step back and catch their breath. For others, I think they’re doing what they can, but the activity hasn’t been as high this year.
Case in point: We’re seeing deals that were meant to be financed, and then at some point, the financing fell apart and the deal canceled. The lower deal flow indicates that we’re still facing supply chain issues. Plus, we continue to hear comments such as, “We’re still waiting on a part” or “We’re still unsure of the return to service (RTS) date.”
For every straightforward closing, there seem to be 2-3 clients with a last-second issue (e.g., a holdback or addendum). Unfortunately, everything this year has just seemed harder than it needs to be. Without a doubt, I’d say 2024 has been the most challenging year to get aircraft escrow deals across the finish line. I’ve tried to make sense of it, but everyone I talk to has a hard time identifying the “why” as well.
My crystal ball for the year end is foggy. As I mentioned above, 2024 is turning out to be a mixed bag. Some dealmakers will continue to thrive, and some will continue to be slow.
What we’ve learned from the business surge of 2020-2023 is that this level of growth isn’t sustainable. This year may just be a healthy correction, setting the stage for a brighter future.
Here at Aero-Space Reports, I’m grateful to report that our year has been strong, and we’re on pace for another year of growth. When it comes to the future, I’ll always choose optimism and look forward to ending on a high note.
About the Author:
Jeff Snowden is the President of Aero-Space Reports, Inc., an industry-leading aircraft escrow and title company based in Oklahoma City, Oklahoma. On a day-to-day basis, his primary function is to act as an Escrow Agent for trusted brokers, attorneys, financing companies, and individual buyers/sellers. He prides himself on his ability to ebb and flow with each transaction based on the deal particulars, the parties involved, and the circumstances surrounding the closing. Jeff is a member of International Aircraft Dealers Association (IADA), National Aircraft Finance Association (NAFA), National Business Aviation Association (NBAA), and Aircraft Owners and Pilots Association (AOPA).